this better work ! tom zizys, metcalf foundation fellow donnalee bell, canadian career development...
TRANSCRIPT
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THIS BETTER WORK !TOM ZIZYS, METCALF FOUNDATION FELLOW
DONNALEE BELL, CANADIAN CAREER DEVELOPMENT FOUNDATION
Pragmatic Solutions for Creating Good Jobs
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WHAT DO PEOPLE WANT?
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• According the World Gallup Poll what people want today more than anything is a GOOD JOB!
• 30 years ago people told Gallup they wanted love, money, food, shelter, safety, peace and freedom
• Full time
• Fairly compensated
• Safe
• Respectful
• Meaningful
“It may be more accurate to distinguish “good and bad” work environments/workplaces”
Graham Lowe
WHAT DO PEOPLE WANT?
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SOMETHING’S NOT RIGHT
• We have jobs without people and people without jobs
• We can’t seem to be able to say if there a skill shortage.
• The most educated cohort in our country is being asked to work for free.
• According to SunLife (Nov. 2012), 90% of youth 18-24 feel excessive stress because of economic instability and underemployment
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SESSION OUTLINE
• Explain how we got to this point
• Explore the impact of shifting from the loyalty line to the bottom line has had on careers
• What can and is being done
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HOURGLASS LABOUR MARKET
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COMPARISON OF DISTRIBUTION OF JOBS BYSKILL CATEGORIES, ONTARIO, 1991-2006
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COMPARISON OF DISTRIBUTION OF JOBS BYSKILL CATEGORIES, TORONTO AND THE REST OF ONTARIO, 2006
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CHANGE IN EMPLOYMENT SHARES BY PAY LEVEL, EUROPE AND UNITED STATES, 1993-2006
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CHANGE IN EMPLOYMENT SHARES BY SKILL CATEGORIES, TD BANK, CANADA, 1999-2012
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CHANGE IN EMPLOYMENT SHARES BY SKILL CATEGORIES, TD BANK, CANADIAN PROVINCES, 1999-2012
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PERCENTAGE CHANGE IN EMPLOYMENT SHARE OF ALL JOBS,BY SKILL CONTENT, UNITED STATES, 1981-2011
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CHANGING HIRING AND PROMOTION PRACTICES
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CAREER PATHWAYS IN A 1950S COMPANY
From “Working Better: Creating a High-Performing Labour Market in Ontario” Metcalf Foundation
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THE 1950S CORPORATE STRUCTURE
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The labour market “perfect storm”LATE 60s/EARLY 70s:
STAGFLATION
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FRAGMENTED CAREER PATH IN A 1990S FIRM
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THE INTEGRATED FIRM NOW BECOMES THE NETWORKED FIRM
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THE FINANCIALIZATION OF OUR ECONOMY
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THE SHIFT TO FINANCIALIZATION
• Concept of shareholder value: CEO primary responsibility is to maximize return to shareholders
• Stock market difficulties in 1970s opened way to hostile takeovers
• Broad conglomerates were thought to be worth more if run more efficiently or if broken up
• Not that weren’t profitable, but could be more profitable
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THE TYRANNY OF THE “RATIOS”
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ELEMENTS OF THIS MODEL AFFECT OTHER BUSINESSES
• Not every business is looking to shed its workforce
• But how a business is evaluated may depend on these ratios
• The ability of a business to access capital (stocks, loans) may be affected by these ratios
• Others borrow parts of this model (contracting out)
• Each business is acting in its own interest, but collectively is undermining employment and ultimately the economy
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WHAT DOES THIS MEAN FOR THE SUPPLY SIDE (OUR CLIENTS)?
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• Canada has the highest percentages of the population aged 25 – 64 with tertiary education among OECD countries
YOUTH HAVE DONE THEIR PART
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BUT…
Canadian college graduate earnings (25-64 year olds) compared to other countries (2010 or latest available year)
France
OECD average
United Kingdom
Sweden
Germany
Australia
United States
Canada
Japan
12.6%
13.3%
11.6%
5.0%
10.9%
8.1%
10.2%
13.3%
10.1%
9.9%
13.0%
13.3%
14.7%
14.8%
16.4%
19.3%
23.1%
34.7%
At or below half of the median More than 2 times the median
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BUT THEN …Canadian university graduate earnings (25-64 year olds) compared to other countries (2009 or latest available year)
United Kingdom
Japan
OECD average
Australia
France
Sweden
Germany
United States
Canada
28.0%
34.7%
26.7%
18.4%
25.1%
14.1%
27.2%
30.3%
29.4%
7.7%
8.9%
9.3%
9.7%
10.1%
10.9%
12.1%
12.8%
17.6%
At or below half of the median More than 2 times the median
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THE B.A.RISTA GENERATION
In Canada
• Under-employment number 2nd highest in OECD since 2005
• 1 in 4 – the ratio of young people with university degrees who worked in “low-skilled” jobs in 2012
• 40% of food and beverage servers and 45% of retail salespersons (age d 25-54) in Ontario hold a university or college degree
• The earnings gap between high school grads and those with a university bachelor’s degree is narrowing.
Sources: World Economic Forum; Statistics Canada study – “Unemployment Dynamics Among Canada’s Youth”
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ENTRY-LEVEL JOBS ARE NO LONGER STEPPING STONES• More casual, part-time and temp work• Wages dropped for entry-level jobs• Drop in minimum wage in real terms• Less unionization• Less opportunity for advancement and many are
getting stuck
= More income inequality
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WHAT’S THE WAY FORWARD?
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Prescription: Focus on Employers
• Grooming individuals for a job• Supporting access to next rung of the career
ladder• Employers need to invest more in training
THE QUESTION:
Is there a business case for employers investing in their workforce?
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MANY BARRIERS TO TRAINING
Simply making the business case for training is not enough:
• Cost (simple matter of cash-flow)
• Risk aversion (immediate expense, distant gain)
• Information (ROI on training, peer benchmarks)
• Resources (which training, who should deliver)
• Poaching (fear that trained workers will leave)
• Inertia (easier to leave this as they are)
• Competence (broader HR skills)
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Demand-side approaches andskills development
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THREE LEVELS OF RESPONSE
1. Addressing the specific challenges/ barriers faced by the individual employer
2. Using intermediaries to broaden the reach/create economies of scale
3. Promoting those values and norms that recognize the value of employees
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A STRATEGY WITH THREE DIMENSIONS
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RECOMMENDATIONS:EMPLOYER PRACTICES
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RECOMMENDATIONS: INTERMEDIARIES
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RECOMMENDATIONS:NORMS AND VALUES
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QUESTIONS?
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FINAL WORDS
“We live in a time of ultra capitalism, that often seems inescapable. Well so did the
divine right of kings.”Ursula Le Guin